US: Banana prices help drive Fresh Del Monte profits
Higher demand and fall in supply helped banana prices, Fresh Del Monte said
Fresh Del Monte Produce today (29 July) posted increased half-year earnings, as higher selling prices for bananas in the second quarter helped its profits.
The US-based group booked net income of US$122.9m for the six months ended 27 June, up from US$103.1m a year earlier. Operating income was also higher, hitting US$140.5m, against US$104.7m in the first half of 2013.
Net sales were up 8.8% at US$2.11bn. Fresh Del Monte saw sales increase across each of its three divisions.
However, the company's banana and prepared foods divisions ran up higher gross profit, while earnings from its other fresh produce arm dipped.
Selling prices of bananas in Europe and the Middle East were higher in the second quarter, Fresh Del Monte said. Foreign exchange in Europe, plus increased demand and lower supply, boosted prices.
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